A bunker fuel and oil report, detailing the day per day trading patterns and prices in the market.The report is prepared from OW Risk Management and covers all major bunker fuel oil markets around the world, including all major ports, ranging from Singapore to Rotterdam.

Market in Brief

Last Friday Crude Oil started weaker but managed to hold up and closed slightly lower. The September WTI contract was down -$0.49 to settle at $92.87/bbl and Brent dipped -$0.27 to close at $112.95/bbl. Market was able to hold despite bearish economic data from China. The Chinese trade data was weak, but interestingly, market seemed to interpret that as positive in the light of possibly more economic stimuli coming from the Chinese government. The European crude market is also experiencing some level of tightening due to maintenance in North Sea oil field which supports Brent. No major economic data is scheduled today after Japan growth numbers in Q2 at +1,4% showing that the economy is cooling (Q1 was at +5,5%). Nevertheless this morning, crude is trading up.

Fueloil Specifics

The Northwest European fuel oil market closed last week slightly lower. Delivered 380cst product in Rotterdam lost app. $2/mt while cargo prices were down app.$5/mt compared to previous day close. Demand was reported to be good in ARA hub with Rotterdam port still struggling with loading delays. The Singapore fuel oil market reopened after a one day break on holiday with prices rising about +$3.0 during the morning window last Friday. The latest Singapore heavy residual oil inventory saw a build of +1.4 mbbl to 21.26 mbbl. The delivered bunker premiums fell to around $6.50 above cargo prices last Friday. This morning both markets are trading higher.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q113 Q213 2013 NYMEX WTI Swap (1st month) (0.49) 92.87 ↑ 93.97 94.32 94.69 95.15 95.24 94.67 ICE Brent Swap (1st month) (0.27) 112.95 ↑ 112.03 111.31 110.79 109.23 108.30 110.81 ICE Gasoil Swap (1st month) 0.00 955.00 ↑ 962.42 960.67 957.58 948.06 934.19 934.12 3.5% Barges FOB Rtdm (5.00) 630.25 ↑ 634.50 630.75 627.75 621.25 614.75 611.50 3.5% Cargoes FOB Med (3.75) 628.25 ↑ 628.50 625.25 622.75 616.75 610.75 607.50 1.0% Cargoes FOB NWE (1.00) 687.25 ↑ 682.50 674.50 668.25 655.75 648.75 645.50 3% no. 6 USGC WB (0.35) 98.90 ↑ 99.75 99.00 98.50 96.25 95.25 95.75 380 CST Cargoes FOB S'pore - 655.50 ↑ 654.75 652.00 649.75 643.75 637.00 633.75 0.1 % GO Barges FOB Rtdm (9.25) 950.75 ↑ 962.25 961.25 958.25 949.25 935.25 936.25 Physical Rotterdam 380 CST (2.00) 641.25 ↑ 644.75 641.00 638.00 631.50 625.00 621.75 Physical Singapore 380 CST - 662.00 ↑ 665.00 662.25 660.00 654.50 647.75 644.50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Retail Sales High 14-Aug 8:30 AM Jul 0.2% -0.5% - PPI- Core Medium 14-Aug 8:30 AM Jul 0.2% 0.1% - Business Inventories Medium 14-Aug 10:00 AM June 0.2% 0.3% - CPI- Core High 14-Aug 8:30 AM Jul 0.2% 0.2% - Empire Manufacturing Medium 15-Aug 8:30 AM Aug 5.0 7.4 - Industrial Production Medium 15-Aug 9:15 AM Jul 1.0% 0.4% - Capacity Utilization Medium 15-Aug 9:15 AM Jul 79.4% 78.9% - Initial Claims Medium 16-Aug 8:30 AM 11-Aug 365K 361K - Housing Starts Medium 16-Aug 8:30 AM Jul 770K 760K - Philadelphia Fed Medium 16-Aug 10:00 AM Aug -5.0 -12.9 - Mich Sentiment High 17-Aug 9:55 AM Aug 71.0 72.3 - Leading Indicators Medium 17-Aug 10:00 AM Jul 0.2% -0.3% -

Source: OW Risk Management